Chinese and American firms are finding that their fortunes in trying to tap the world’s two largest economies are increasingly dependent on the fast-changing political environment.
Chinese and American firms are finding that their fortunes in trying to tap the world’s two largest economies are increasingly dependent on the fast-changing political environment.
Chinese President Xi Jinping’s top economic envoy, Liu He, is due to arrive in Washington this week for meetings with U. S. officials in the wake of a tweet by U. S. President Donald Trump that appeared to resurrect the fortunes of ZTE Corp. The telecoms company, sanctioned by the U. S., suddenly found itself forgiven in a move that has brightened the outlook talks.
In another twist, Chinese regulators have restarted their review of Qualcomm Inc.’s bid to buy a Dutch-registered semiconductor company after suspending the process in response to rising trade tensions. Meanwhile, JPMorgan Chase & Co pressed ahead with its aim to benefit from China’s accelerated financial opening just a week after Chief Executive Officer Jamie Dimon said he hoped the trade spat wouldn’t affect his company.
Such encouraging signs from across industries at the start of the week could turn sour, however, if negotiations get bogged down. That’s the danger inherent in business deals becoming chips in a high-stakes negotiation run, partly, via Twitter. For CEOs on both sides of the Pacific Ocean, reaching a deal — any deal — is paramount.
“Lui He’s goal is to get Washington to compromise in response to China’s offer to compromise,” said Pauline Loong, managing director at research firm Asia-Analytica in Hong Kong. “Exactly which concession is on offer is less important than reaching a breakthrough in the confrontation.” Envoy Visit
Liu, who is President Xi Jinping’s top aide for economic matters, will be accompanied on the visit to the U.
